What Are the Functions of a Board of Directors?

by Kevin C. McCafferty

Overview

All of the major responsibilities of a board of directors are related to the management and governance of a business or corporation.
Chief Executive

One of the primary functions of a board is to select a chief executive to whom business administration is delegated. The chief executive's performance is evaluated periodically by the board.

Resources

A board is responsible for ensuring that the company has adequate financial resources for products or services and for acquiring those resources as necessary.
Governance

The board determines broad plans and policies and determines company priorities and the capacity for carrying out its various programs. Programs and procedures must be continually monitored by the board.
Public Relations

The board is responsible for enhancing the corporation's image in the public. It does this by articulating the mission, goals and accomplishments to the public and accounting for missteps.
Stakeholders

A board of directors is responsible to stakeholders. Stakeholders include any who are affected by the efforts or products of the company, including, but not limited to, stockholders.

Overview